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Coronavirus to complicate Australian shipping

  • : Coal, Coking coal, Metals, Natural gas
  • 20/02/04

The Australian government's decision to impose a 14-day quarantine on vessels that leave mainland China after 1 February bound for Australian ports will cause scheduling issues for Australian energy and mineral shipments.

Pilots, who are used to guide bulk carriers, LNG carriers and other vessels into most Australian ports, and other Australia-based workers will not board vessels that left mainland China after 1 February until they have passed a 14-day quarantine period. This could cause delays for vessels arriving from China to Australian iron ore, LNG, bauxite and other mineral loading terminals in Western Australian (WA), the Northern Territory and far north Queensland, which are usually less than a 14-day journey from key Chinese ports. It may also cause delays for vessels that need Australian reef pilots to navigate the Great Barrier Reef on their approach to coal and LNG terminals in Queensland, as these personnel often join vessels some distance from the port.

Vessels must declare if any of the crew has symptoms, such as a fever, breathlessness or flu-like symptoms. If there is any sickness on vessels from mainland China within the quarantine period, then the quarantine will be restarted for a further 14 days.

The uncertainty created by the possible extension of quarantines is likely to cause particular problems for multi-user ports, like the WA iron ore and lithium concentrate export port of Port Hedland, as well as the coal and LNG port of Gladstone in Queensland. These ports operate complex schedules designed to maximise access to congested channels for multiple users.

Shipping queues are already longer than normal on the east coast of Australia because of increased activity and some difficult weather conditions over the past two weeks. The most northerly Queensland coal port of Abbot Point had 13 vessels queuing today, up from an average of around four, while Gladstone had 27 that is around double its average. The queue outside the adjacent coal ports of Hay Point and Dalrymple Bay Coal Terminal is at 26, which is only marginally above average, while the queue at Newcastle is at an 18-month high of 20 vessels.

By Jo Clarke


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Brazil's CSN expects flat steel, upside ahead


25/05/09
25/05/09

Brazil's CSN expects flat steel, upside ahead

Sao Paulo, 9 May (Argus) — Brazil's mining and steel firm CSN expects strong domestic demand to keep steel prices flat in 2025, with the potential for an uptrend in the coming months. Sales to the agricultural machinery and automotive industries should continue to trend upward , the company said. Civil construction sales have been solid and could tick up as the rainy season ends in Brazil. "Demand is good," executive director Luis Fernando Martinez said, adding that the firm will hold back price gains "to maintain profitability." The price of CSN's overall steel products increased by 5pc in the first quarter from a year earlier thanks to a 7pc increase in demand. Average steel prices hit a two-year high at R5,252 ($928)/metric tonne from R5,008/t a year earlier. Steel consumption has been climbing in Brazil and sales could have been stronger if not for growing competition from imports, the company said. Brazil's import penetration hit 27pc of the domestic market in the quarter, outstripping CSN's domestic market share. "I've never seen this in the [23 years] I've been in the company," Martinez said, calling the situation "unsustainable." Despite what he described as an inefficient tariff policy against imports, prices are expected to remain at current levels. Brazil implemented a 25pc tariff on 11 steel products from China in June 2024. The policy is set to expire by the end of May. Results Shipments reached 1.14mn t in the period, up 5pc from 1.08mn t a year earlier, driven by 8pc growth in domestic market sales. Slab production fell by 16pc to 812,000t because of a stoppage at the Rio de Janeiro-based Blast Furnace 2 in January. The company expects the asset to remain under maintenance for at least three more months. CSN produced 775,000t of flat-rolled steel in the quarter, 11pc less than a year prior. Long steel output increased by 12pc to 58,000t from a year earlier. The company registered a R732mn loss in the first quarter, 53pc higher than the R480mn loss a year before. By Isabel Filgueiras Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

White House ends use of carbon cost


25/05/09
25/05/09

White House ends use of carbon cost

Washington, 9 May (Argus) — The US is ending its use of a metric for estimating the economic damages from greenhouse gas (GHG) emissions, the latest reversal of climate change policies supported by President Donald Trump's predecessors. The White House Office of Management and Budget (OMB) this week directed federal agencies to stop using the social cost of carbon as part of any regulatory or decision-making practices, except in cases where it is required by law, citing the need "remove any barriers put in place by previous administrations" that restrict the ability of the US to get the most benefit "from our abundant natural resources". "Under this guidance, the circumstances where agencies will need to engage in monetized greenhouse gas emission analysis will be few to none," OMB said in a 5 May memo to federal agencies. In cases where such an analysis is required by law, agencies should limit their work "to the minimum consideration required" and address only the domestic effects, unless required by law. OMB said these steps are needed to ensure sound regulatory decisions and avoid misleading the public because the uncertainties of such analyses "are too great". The budget office issued the guidance in response to an executive order Trump issued on his first day in office, which also disbanded an interagency working group on the social cost of carbon and called for faster permitting for domestic oil and gas production and the termination of various orders issued by former president Joe Biden related to combating climate change. The metric, first established by the administration of former US president Barack Obama, has been subject to a tug of war between Democrats and Republicans. Trump, in his first term, slashed the value of the social cost of carbon, a move Biden later reversed . Biden then directed agencies to fold the metric into their procurement processes and environmental reviews. The US began relying on the cost estimate in 2010, offering a way to estimate the full costs and benefits of climate-related regulations. The Biden administration estimated the global cost of emitting CO2 at $120-$340/metric tonne and included it in rules related to cars, trucks, residential appliances, ozone standards, methane emission rules, refineries and federal oil and gas leases. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil's inflation accelerates to 5.53pc in April


25/05/09
25/05/09

Brazil's inflation accelerates to 5.53pc in April

Sao Paulo, 9 May (Argus) — Brazil's annualized inflation rate rose to 5.53pc in April, accelerating for a third month despite six central bank rate hikes since September aimed at cooling the economy. The country's annualized inflation accelerated from 5.48pc in March and 5.06pc in February, according to government statistics agency IBGE. Food and beverages rose by an annual 7.81pc, up from 7.68pc in March. Ground coffee increased at an annual 80.2pc, accelerating from 77.78pc in the month prior. Still, soybean oil prices decelerated to 22.83pc in April from 24.36pc in March. Domestic power consumption costs rose to 0.71pc from 0.33pc a month earlier. Transportation costs decelerated to 5.49pc from 6.05pc in March. Gasoline prices slowed to a 8.86pc gain from 10.89pc a month earlier. The increase in ethanol and diesel prices decelerated as well to 13.9pc and 6.42pc in April from 20.08pc and 8.13pc in March, respectively. The hike in compressed natural gas prices (CNG) fell to 3.5pc from 3.92pc a month prior. Inflation posted the seventh consecutive monthly increase above the central bank's goal of 3pc, with tolerance of 1.5 percentage point above or below. Brazil's central bank increased its target interest rate for the sixth time in a row to 14.75pc on 7 May. The bank has been trying to counter soaring inflation as it has recently changed the way it tracks its goal. Monthly cooldown But Brazil's monthly inflation decelerated to 0.43pc in April from a 0.56pc gain in March. Food and beverages decelerated on a monthly basis to 0.82pc in April from a 1.17pc increase a month earlier, according to IBGE. Housing costs also decelerated to 0.24pc from 0.14pc in March. Transportation costs contracted by 0.38pc and posted the largest monthly contraction in April. Diesel prices posted the largest contraction at 1.27pc in April. Petrobras made three diesel price readjustments in April-May. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Q&A: US' ACE Green bets on LFP batteries


25/05/09
25/05/09

Q&A: US' ACE Green bets on LFP batteries

Singapore, 9 May (Argus) — US-based battery recycler ACE Green Recycling has been focusing on the US market, particularly its upcoming Texas recycling site, and plans to run its lead-acid and lithium-iron-phosphate (LFP) battery recycling operations alongside each other in Texas. Argus spoke with ACE Green Recycling's vice-president of investments and strategy, Aaron Wee, about their Texas site, battery recycling gate fees in Europe and the black mass market. The interview is split into two parts and part two's edited highlights follow: What's your view on the US market? The US market for lead is [one of] the most attractive market in the world. It's where you can find possibly some of the cheapest scrap batteries for lead, and also get some of the highest premiums on refined and alloyed lead. In terms of lithium, obviously the US is either the second- or the third-largest economy for [electric vehicles] and lithium batteries in general. Nowadays, with the improvements in LFP battery technology, the range and energy density problems of the past are now not really an issue. We sort of predicted the shift towards LFP quite some time ago. Back when the recyclers were concerned about nickel-manganese-cobalt (NMC) because we're going to get nickel, we're going to get cobalt. That was a relatively easy win for a lot of recyclers. But for us, LFP was always going to be the battery of the future. In fact, in our Texas project, we've already [begun the process of acquiring] the land and the facilities to combine both our battery recycling technology stacks and to co-locate them in a single location. But lead will start first because lead is going to make money tomorrow. LFP might take a little bit of time before feedstock actually comes in. What does ACE think of gate fees, especially in Europe? Does it distort the long-term consideration when setting up battery recycling operations? From a commercial point of view, I think depending on the battery type, that would be €500-800/t of batteries for gate fees in Europe. This may or may not hold over the next couple of years as more recycling capabilities are deployed in Europe. We won't say no to just getting money to recycle them. But our ultimate goal is not to rely on gate fees as a commercial strategy. Moving forward, I don't think any company can rely on gate fees as a strategy. It just won't be tenable. Eventually, somebody's going to be able to do it cheaper and better than you. And if you rely on gate fees, that's the end game right there. Gate fees are usually correlated with the price of lithium. [If] the price of lithium goes up, then recyclers won't [need to] rely on [gate fees]. Chances are we're going to be looking at maybe $12,000/t of lithium carbonate, [or] maybe $11,000 by the end of this year. What does ACE feel about the current pricing mechanism of black mass, battery scrap or even lithium? The correlation between lithium prices and black mass is very strong. But black mass as a commodity is a little bit trickier to export to China because of the regulations. Once they accept black mass [imports], especially LFP black mass, that will have a significant change. There will also perhaps be a fall in prices in the rest of the world because now they can sell to China, not just internally in their own domestic markets. Depending on how trade barriers may or may not come up over the next couple of months, we should see a shift in how black mass is priced. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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